The post Will the 7-Month High NVT Ratio Lead to a Crash? appeared on BitcoinEthereumNews.com.

ADA price is at a crossroads. With the Chang hard fork up ahead and a thin slice of support holding the price up, it is difficult to predict what will happen next. While on-chain metrics hint the market sentiment may be more bullish than bearish, analysis of traders’ behaviors shows they are bearish on the asset. Will ADA price survive the mixed sentiment in the market? Onchain Metrics Reveal ADA Price Potential Rally Data from Santiment shows that the Cardano Network Value to Transactions (NVT) ratio hit a 7-month high, but the price has dropped for the last five days. When the NVT ratio spikes while the price decreases, it generally indicates a bearish signal for the crypto asset. However, IntoTheBlock data shows large holder netflow increased from August 25 to 28 as the price dropped, which indicates that large investors or “whales” may be accumulating the asset despite the falling price.  The buying activity from large holders can signal their confidence in the asset’s long-term potential, even if the short-term price action is negative. Coupled with the spike in the NVT ratio, this positive investor sentiment may signal they are pricing Cardano at a premium, possibly due to speculative interest or future growth expectations. This accumulation may have provided a level of price support, as the increased demand from large holders eventually stabilizes or even pushes the price up, as seen on the Cardano technical analysis. ADA Technical Analysis: Temporary Support or Launch Pad? The Cardano price tried to stay above the 50-day exponential moving average, but the selling pressure was too high. The price dropped below the 50 EMA (indicated by the green line), suggesting that a bearish momentum is dominant. ADA price found support around $0.3550, where most of the whales seem to be building a buy…

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Filed under: News - @ August 30, 2024 3:08 am